2016 ANNUAL REPORT

AIR & SEA FREIGHT F ORWARDING AND O VER SEAS L OGIS TIC S - 5 C ONTINENT S • 20 C OUNTRIES • 62 OFFICES

Contents

Introduction 2

Interview with the Chairman 3

Claire and Susana, CLASQUIN Barcelona

COMPANY OVERVIEW 4

> History of double-digit growth 4

> 2016 Financial overview 6

> Governance 8

> Specialist in International Freight Management 12

> Unique market position 20

> Group Corporate Social Responsibility 33

> Shareholder & Investor Information 36

2016 CONSOLIDATED FINANCIAL STATEMENTS 39

> Table of contents of the consolidated financial statements 40

> Statutory Auditors' report on the consolidated financial statements 80

NOTES TO THE FINANCIAL STATEMENTS 81

> Table of contents of the notes to the financial statements 82

> Boards of Directors management report 83

> Text of resolutions 98

2016 CLASQUIN Annual Report 1

Introduction

"Big enough to do the job, small enough to do it better". This is the motto of the CLASQUIN group, the only multinational medium-sized enterprise in International Freight Management and Overseas Logistics.

In 1984, CLASQUIN made the choice to invest in its own offices. The Company has developed its added value through a truly integrated international network.

This fundamental choice means that CLASQUIN can today offer an international network that meets the expectations of its clients. The Company thus offers a comprehensive platform of high value added services in the global management of the overseas supply chain: the design of customised transport and logistics solutions and the selection and coordination of a network of the very best sub-contracting partners.

A stable management team surrounding Yves REVOL, Chairman & CEO of the Company since 1983, has forged a deep-rooted and UNIQUE management vision within the Group "Clients, Profit & Fun", a vision centred on entrepreneurial culture, client focus, operational excellence and collective performance.

Driven by the commitment of its 716 employees in its 62 offices, the CLASQUIN group achieved its objectives in 2016 and consolidated its unique competitive position.

2016 was a year of remarkable transition marked by the continued search for acquisition opportunities, management restructuring of the German and Australian subsidiaries, the signing of the contract with WISETECH (CargoWise One) to replace its current TMS, the evolu- tion in governance and the recruitment of new talent, the objective of which is to create the necessary conditions to ensure the sustainability of the Company and build the CLASQUIN of the future.

Review of an eventful year.

2016: a year of remarkable transition

2 2016 CLASQUIN Annual Report

Interview

with the Chairman

What are your thoughts about the past year?

Depending on how you look at it, 2016 can be seen in a number of slightly different lights.

Firstly, business was strong, as shown by a number of indicators:

Number of shipments: up 6%,

Number of TEUS*: up 17.3%,

Tons (airfreight): up 5.6%;

This is partly due (as regards the number of transac- tions) to the acquisition of LCI in 2015, but above all to our dynamic sales teams; once again, we outperformed the market in 2016.

Earnings, however, were weak (despite an increase of 3.4% in GP):

EBIT fell 22.4% to 5.2 million, due to both the fall in average margins per shipment (difficult economic situa- tion) and the 6.6% increase in expenses, broken down as follows:

Group Management and IT Architecture / 1.6%,

Change in consolidation scope and forex impact / 1.8%,

Network expansion and acquisitions / 1.8%,

Reshuffling in Germany and Australia / 1.4%.

However, if we look at 2016 in terms of investments made, we see an absolutely exceptional year.

The most significant highlights are by far the renewal of our Executive Committee and the successful appoint- ment of younger members:

promotion of Hugues MORIN as Executive Vice- President,

recruitment of Laurence ILHE as General Secretary, responsible for all Back Office functions (Finance, Legal, HR, Communication, IS/IT),

recruitment of Quentin LACOSTE as COO, responsible for a large part of the international network (Germany, Northern Europe, South-East Asia, India, USA, Canada, Australia),

and the recruitment of Laurent GUILLEN, our new CIO, and Paul MOMÈGE the future manager of our subsi- diary LOG SYSTEM (SSII) (Philippe LE BIHAN who has been the manager for many years will retire at the beginning of 2018).

We now have a top level Management team, enabling us to look ahead to the future full of optimism and ambi- tion. As a manager, this is obviously all very exciting.

Another major highlight of 2016 was the selection of a new transport management system «CargoWise One», to replace our current software, Aeolus, which was devel- oped in-house. This choice is the result of almost two years of work, analysis of existing software, meetings, negotiations, etc. CargoWise One is an Australian soft- ware application which is today the world leader in its sector; it should allow us to standardise and streamline the operational management of the Group, improve pro- ductivity, facilitate acquisitions and the set-up of new operations and optimise client relations and connection with our entire eco-system. The integration of CargoWise into our application environment is being carried out by our subsidiary LOG SYSTEM. The roll-out of CargoWise across the entire Group began in April 2017 and is scheduled for completion by early 2019.

Lastly, 2016 also saw the recruitment of a number of new talents:

new management teams in Germany and Australia, and many other talents too numerous to mention here.

For all of these reasons, 2016 was a year of remarkable transition despite a fall in earnings. What are the other highlights of 2016?

In addition to the above, I would mention:

the successful integration of LCI-CLASQUIN, a com- pany specialising in the North African region that we acquired in May 2015; LCI-CLASQUIN witnessed growth of 8.6% (GP) in 2016,

the acquisition of ART SHIPPING/Paris, a small company specialising in the transportation of fine art and of AWC, a small New York-based customs broker,

the end-of-year opening of two new subsidiaries, CLASQUIN PORTUGAL and CLASQUIN CHILE, as well as

an office in Bangalore,

lastly, the creation of a "Supply-Chain Management" division managed by our former CIO, David CANARD- VOLLAND.

And what about the Group's long-term strategy?

CLASQUIN has been applying the same business model for the last 25 years, and has demonstrated its capacity for growth in the management of goods flows on East- West routes.

Our growth was underpinned by the steady opening of new offices in our three core regions: Europe, Asia and North America. For many years, we benefited from a high-growth market and at the same time continued to acquire market shares wherever we were present, resulting in double-digit growth up until 2008.

Today, the slowdown in global trade (the annual growth rate has sat between 1 and 2% for several years now) compels us to reconsider our priorities and to look for new growth drivers.

Specifically:

we will prioritise trade with countries that we believe will become the most buoyant in terms of external trade over the coming years: India, South-East Asia (we are already present in all of these countries), Northern Africa and possibly Sub-Saharan Africa (we have started looking at whether we have the capacity to begin operating there),

we are also interested in the Near and Middle East,

finally, we wish to step up the development of our overseas logistics services (storage, order preparation, distribution, etc.) allowing exporters to optimise the management of their inventories and their overseas distribution. Of course, we will continue to consider acquisition opportunities.

Can you provide a snapshot of 2017?

As mentioned above, the growth outlook for global trade remains moderate (+/-2%). That said, we have what it takes to outperform the market.

I am also reasonably optimistic with regard to the roll- out of CargoWise; the software has already been imple- mented all over the world in several hundred companies, ranging from SMEs to... DHL. Our teams are extremely committed and have been ready for its roll-out for months now.

To conclude, I would like to thank all of our clients for their trust and loyalty, our fantastic teams for their commitment and professionalism, and our shareholders for their active support towards our development.

*TEUS : Twenty Equivalent Units.

2016 CLASQUIN Annual Report 3

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